DECISION No AMENDING OSCE STAFF REGULATIONS

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1 PC.DEC/1216/Corr.1 1 Organization for Security and Co-operation in Europe Permanent Council Original: ENGLISH 1110th Plenary Meeting PC Journal No. 1110, Agenda item 5 DECISION No AMENDING OSCE STAFF REGULATIONS The Permanent Council, Recalling Permanent Council Decision No of 31 December 2015, in which the Permanent Council tasked the Chairperson of the Advisory Committee on Management and Finance (ACMF) to initiate a working group on horizontal issues of the OSCE budget in order to identify efficiencies in particular in the field of staff costs, Taking into consideration document PC.ACMF/34 /16 of 29 June 2016, and the enclosed recommendations on efficiencies as they relate to Salary structure, Repatriation grant, Incentive payment, Classification, Travel, Annual leave encashment, Overtime and Board and lodging allowance (BLA) and daily subsistence allowance (DSA) overlap (Annex 1); Takes note of the recommendations for future work of the ACMF as they relate to the secondment system, the BLA methodology, the OSCE contract policy, the possible replacement of the category of International Contracted Mission Members with International Contracted Staff Members and the issue of local income taxation; Acting in accordance with the relevant provisions of Staff Regulation 11.01, Approves the attached amendments to OSCE Rule on the payment of salaries, Regulation 5.11 on the repatriation grant 1, Regulation 5.13 on board and lodging allowances, Regulation 5.14 on dependency allowances, Regulation 5.15 on the education grant, Rule on overtime and Rule on the accumulation and granting of annual leave (). 1 Includes a corrected reference to Regulation 5.11 on the repatriation grant, which was erroneously referred to as Regulation 5.11 on the education grant in document PC.DEC/1216 as originally distributed. PCOEW6679

2 PC.DEC/1216/Corr.1 Annex 1 RECOMMENDATIONS ON EFFICIENCIES 1. Salary structure Recommends implementing the changes stemming from the International Civil Service Commission (ICSC) review of the UN Common System professional category posts; To effect these changes as of 1 January Repatriation grant Recommends that the ICSC changes to the repatriation grant be put in place at the OSCE while paying due regard to the non-career nature of the Organization; To this end recommends to: Implement a vesting period of five years for the repatriation grant for professional posts below the P-5 level; Implement a vesting period of three years for the repatriation grant for professional posts at the P-5 level; Implement a vesting period of two years for the repatriation grant for all director posts; To effect these changes as of 1 January Incentive payment Recognizing that the current compensation package offered by the OSCE could provide challenges in recruitment of some specialized posts, recommends the establishment of the incentive payment as outlined by the ICSC review of professional level posts; Further recommends: That such an incentive payment only be employed on an exceptional basis and for international contracted posts, when the Organization is unable to attract suitably qualified personnel, and after the position has been vacant and under active recruitment for period longer than one year; That the amount of the incentive payment be limited to 25 per cent of the base salary payable for the first year of assignment, so as not to exceed that of the equivalent benefit in the UN Common System;

3 - 2 - PC.DEC/1216/Corr.1 Annex 1 To implement the incentive payment from within existing budget funds and for a trial period of two years; To effect these changes as of 1 January 2017; 4. Classification recommendations Recommends to: Call upon the OSCE executive structures to propose upgrades only in exceptional cases and whenever possible downgrade or eliminate posts, and affect this when posts become vacant; Invite the executive structures which have not yet done so to initiate a structured reclassification review process where all posts would be carefully considered with a view to ensuring efficient and effective use of Staff Standard Costs; Annually present progress on review of the classification of posts by executive structure in the horizontals document of the Unified Budget Proposal (UBP). This document should, consequently include a table showing the proposed downgrades and upgrades within an executive structure for the respective year, highlighting the efficiencies gained through this initiative; 5. Staff and mission member travel Recommends for all executive structures to reduce travel expenses by 2 per cent for 2017 and come up with measures to reduce travel costs on an ongoing basis and report thereon in the annual UBP and Programme Budget Performance Report (PBPR), in particular regarding the use of business class travel; To effect these changes for all executive structures for 1 January 2017; 6. Annual leave encashment Recommends limiting the annual leave encashment to 15 days; To effect these changes as of 1 January 2017; 7. Overtime Noting that all P and D staff members are not entitled to overtime, recommends following changes to overtime for all G staff: Limiting the payment of overtime to exceptional cases and only through the approval of the head of an executive structure; Limiting overtime accrual to 1.0x the time worked for all G staff and mission members;

4 To effect these changes starting 1 January 2017; 8. BLA and DSA overlap PC.DEC/1216/Corr.1 Annex 1 Recognizing that the current Staff Regulations and Staff Rules (SRSR) formulation with respect to BLA and DSA rates in missions creates unintended economic disincentives to seconded staff travel, recommends removal of the provisions of the SRSR which reduce BLA for seconded mission members traveling on DSA; To effect these changes as of 1 January 2017; Recommendations for future work (f) (g) (h) The ACMF to continue to discuss the challenges pertaining to the recruitment of qualified staff, particularly with regard to the secondment system; The ACMF to engage in a separate discussion on the question of the OSCE BLA methodology with a view to more closely reflecting both efficiencies as well as alignment with cost indicators as provided through the UN Common System; The ACMF to engage in a separate discussion on the question of the OSCE contract policy with a view to exploring an aligned period of service for all professional posts and a standardized period of service for seconded staff/mission members in an executive structure to ten years; The ACMF to explore the proposal to delete the International Contracted Mission Members category and to transfer all such posts to the category of Internationally Contracted Staff Members, following receipt of a detailed cost impact assessment and possible transition modality options from the Secretariat; The ACMF to continue discussions on local staff income tax and to actively pursue solutions with a view to ensuring full compliance with the OSCE Staff Regulations and Staff Rules; The OSCE Secretariat to conduct a study on the on non-financial performance incentives based on merit and to report thereon; OSCE Fund Managers to pursue efficiency measures on an ongoing basis and clearly present such measures in the annual UBP, as well as report on progress in identifying and implementing efficiency measures (including amount of actual savings, where applicable) in the PBPR, to be separately discussed at an ACMF meeting in the framework of the PBPR/Programme Outline discussions; After two years, the ACMF to assess the extent to which the proposed measures provided efficiencies and, if needed, consider further recommendations.

5 PC.DEC/1216/Corr.1 Rule Payment of salaries Rule Payment of salaries Salaries of international contracted staff members, including the Secretary General and heads of institution, shall be paid either at a single or a dependency rate, depending on the family status. Salaries of international contracted staff members, including the Secretary General and heads of institution, shall be paid either at a single or a dependency rate, depending on the family status. Salaries of international contracted mission members shall be paid at a single rate. Short term international contracted mission members temporarily appointed against a post open for secondment, shall only be entitled to equivalent of the board and lodging allowance applicable at the duty station concerned. Salaries shall be paid monthly at the end of the month to which they apply. One twelfth of the annual salary shall be paid for each full month of qualifying service. For service periods less than a full month, one three hundred and sixtieth of the annual salary shall be paid for each calendar day of qualifying service. Salaries of international contracted staff members, including the Secretary General and heads of institution, shall be paid in accordance with the United Nations Common System Salaries of international contracted mission members shall be paid at a single rate. Short term international contracted mission members temporarily appointed against a post open for secondment shall only be entitled to the equivalent of the board and lodging allowance applicable at the duty station concerned. Regulation 5.11 Repatriation Grant Under the conditions laid down in the Staff Rules, the OSCE shall pay a repatriation Regulation 5.11 Repatriation Grant Under the conditions laid down in the Staff Rules, the OSCE shall pay a

6 - 2 - PC.DEC/1216/Corr.1 grant to international fixed term contracted staff members, including the Secretary General and the heads of institution, in respect of themselves, their spouse and dependent children upon separation from service. Rule Payment of Repatriation Grant The repatriation grant shall be payable to international fixed term contracted staff members who have completed one year of continuous service outside the country of his/her place of home leave. The repatriation grant shall not be paid to a staff member who is summarily dismissed. The amount of the grant shall be calculated on the basis of the staff member s last salary, excluding post adjustment, and the staff member s completed years and months of qualifying service outside the country of his/her place of home leave, according to the scale set forth in Appendix 5. A dependent child, for the purpose of repatriation grant, shall mean a child recognized as dependent under Rule at the time of the staff member s separation from service. If applicable, the repatriation grant shall be paid at the dependency rate to eligible staff member regardless of the place of residence of his/her spouse or dependent child. repatriation grant to international fixed term contracted staff members, including the Secretary General and the heads of institution, upon separation from service. New Rule Conditions of Entitlement International fixed-term contracted staff members appointed at the Professional level below P-5 who have completed five years of continuous service outside the country of his/her place of home leave shall be paid a repatriation grant. International fixed-term contracted staff members appointed at the P-5 level who have completed three years of continuous service outside the country of his/her place of home leave shall be paid a repatriation grant. International fixed-term contracted staff members appointed at the Director level who have completed two years of continuous service outside the country of his/her place of home leave shall be paid a repatriation grant. The repatriation grant shall not be paid to a staff member who is summarily dismissed. Where both spouses are staff members and each is entitled, on separation, to payment of a repatriation grant, Note that new paragraph was previously included under Rule

7 - 3 - PC.DEC/1216/Corr.1 (f) payment shall be made to each, at single rates, according to their respective entitlements, provided that, where dependent children are recognized, the first parent to be separated may claim payment at the dependency rate. In this event, the second parent, on separation, may claim payment at the single rate for the whole period of qualifying service, or, if eligible, at the dependency rate for the whole period of his/her qualifying service, from which shall normally be deducted the difference between the dependency rate and the single rate of the repatriation grant paid to the first parent. In the event of the death of an eligible staff member, no payment shall be made unless there is a surviving spouse or one or more dependent children whom the OSCE is obligated to return to their home country. If there is one such survivor, payment shall be made at the single rate; if there are two or more such survivors, payment shall be made at the rate applicable to a staff member with a spouse or dependent child. The above provisions shall apply mutatis mutandis to the Secretary General and the heads of institution. Rule Rule Payment of Repatriation Grant The repatriation grant shall be payable to international fixed term contracted staff members who have completed one year of continuous service outside the country of his/her place of home leave. The repatriation grant shall not be paid to a staff member who is summarily dismissed. The amount of the grant shall be calculated on the basis of the staff member s last salary, excluding post adjustment, and the staff member s completed years and months of qualifying service outside the country of his/her place of home leave, according to the scale set forth in Appendix 5. A dependent child, for the purpose of repatriation grant, shall mean a child recognized as dependent under Rule at the time of the staff member s separation from service. If applicable, the repatriation grant shall be paid at the dependency rate to eligible staff member regardless of the place of residence of his/her spouse or dependent child. Where both spouses are staff members and each is entitled, on separation, to payment of a repatriation grant, payment shall be made to each at single rates, staff member according to their respective entitlements., provided that, where dependent children are

8 - 4 - PC.DEC/1216/Corr.1 recognized, the first parent to be separated may claim payment at the dependency rate. In this event, the second parent, on separation, may claim payment at the single rate for the whole period of qualifying service, or, if eligible, at the dependency rate for the whole period of his/her qualifying service, from which shall normally be deducted the difference between the dependency rate and the single rate of the repatriation grant paid to the first parent. In the event of the death of an eligible staff member, no payment shall be made unless there is a surviving spouse or one or more dependent children whom the OSCE is obligated to return to their home country. If there is one such survivor, payment shall be made at the single rate; if there are two or more such survivors, payment shall be made at the rate applicable to a staff member with a spouse or dependent child. (f) The above provisions shall apply mutatis mutandis to the Secretary General and the heads of institution. Regulation 5.13 Board and Lodging Allowances Under the conditions laid down in the Staff Rules, the OSCE shall pay board and lodging allowances to international mission members, including heads of mission, unless Regulation 5.13 Board and Lodging Allowances Under the conditions laid down in the Staff Rules, the OSCE shall pay board and lodging allowances to international mission members, including heads of

9 - 5 - PC.DEC/1216/Corr.1 they have the status of permanent resident in the host country of the mission. Rule Payment of Board and Lodging Allowance Board and Lodging Allowance (BLA) shall consist of a daily allowance payable by the Organization which is intended to cover at least partially the living expenses incurred by international mission members assigned or appointed to a mission. Such an allowance shall not be paid to international mission members who are permanent residents of the host country. BLA rates shall be established for each Mission by the Secretary General in December each year, and shall remain valid for the following year. In determining BLA rates, the Secretary General shall take account of the costs of accommodation, food and miscellaneous expenses in the mission area. mission, unless they have the status of permanent resident in the host country of the mission. Rule Payment of Board and Lodging Allowance BLA shall be paid for the duration of the appointment/assignment commencing from the arrival date of the mission member in the duty station. However, for travel on official business outside the mission area, only 50% of the applicable BLA rate shall be paid in addition to the applicable DSA rate. BLA shall be paid for the duration of the appointment/assignment commencing from the arrival date of the mission member in the duty station. However, for travel on official business outside the mission area, only 50% of the applicable BLA rate shall be paid in addition to the applicable DSA rate. The Head of Mission may approve requests from an international mission member for BLA advances under the conditions specified in Rule

10 - 6 - PC.DEC/1216/Corr.1 For duty stations where for security or other reasons the OSCE provides accommodation for international mission members, the applicable charges for such accommodation shall be deducted from the payment of the applicable BLA rate. In such cases the amount deducted shall not exceed 50 per cent of the BLA. Regulation 5.14 Dependency Allowances Under the conditions laid down in the Staff Rules, the OSCE shall pay dependency allowances to eligible fixed term contracted staff members, including the Secretary General and the heads of institution, as follows: (i) (ii) For eligible international staff members, a child allowance shall be paid for each dependent child equal to the amount approved in the United Nations Common System. However, such an allowance shall not be paid in respect of the first dependent child if the staff member has no dependent spouse; in this case the staff member shall be remunerated in accordance with the dependency rate of the salary scales; For each disabled child an annual amount equal to the amount approved by the United Nations General Assembly for the United Nations Common System. However if the staff member has no dependent spouse and Regulation 5.14 Dependency Allowances Replaced by the following complete amendment: The OSCE shall pay dependency allowances to eligible fixed-term contracted staff members in accordance with the United Nations Common System. The Secretary General shall establish a mechanism to avoid duplication of benefits for the same purpose from different sources. Rule Child Allowance Fixed-term contracted staff members shall be entitled to payment of a child allowance for each dependent child. The rates of the child allowance, which are established in accordance with the United Nations Common System, are shown in Appendix 7, and, in the case of local staff members, in the respective salary scale.

11 - 7 - PC.DEC/1216/Corr.1 (iii) is entitled, in respect of a disabled child, to be remunerated in accordance with (i) above, the allowance shall be the same as the allowance for a dependent child in (i) above. The age limit shall not apply in respect of a disabled child; For eligible local staff members, dependency allowances shall be paid at rates and under conditions as established for each of the duty stations of the OSCE taking into account the United Nations Common System. The Secretary General shall establish a mechanism to avoid duplication of benefits for the same purpose from different sources which will be elaborated in the Staff Rules. If both parents are staff members, only one may claim for dependent children. Rule Payment of Dependency Benefits Depending on their family status, international fixed term contracted staff members shall receive salaries either at a single or a dependency rate, as shown in Appendix 3. For each disabled child an annual amount equal to the amount approved for the UN Common System. The age-limit shall not apply in respect of a disabled child. Rule Spousal Allowance Fixed-term contracted staff members shall be entitled to payment of a spousal allowance in relation to a dependent spouse as defined in The rates of the spousal allowance, which are established in accordance with the United Nations Common System, are shown in Appendix 7, and, in the case of local staff members, in the respective salary scale. Rule Single Parent Allowance Fixed-term contracted staff members who are single parents and who provide main and continuous support for their dependent children shall receive a single parent allowance. The rates of the single parent allowance, which are established in accordance with the United Nations Common System, are show in Appendix 7, and, in the case of local staff members, in the respective salary scale. Local fixed term contracted staff members may receive a dependency benefit for a dependent spouse in the form of spouse allowance, if it has been established for the duty station. The rates of spouse allowance are indicated with the salary scales for local staff. Rule Payment of Dependency Benefits If both parents are staff members, only one may claim for dependent children. If a staff member or his/her spouse receives an allowance for a child

12 - 8 - PC.DEC/1216/Corr.1 (f) Local fixed-term contracted staff members who do not have a spouse and are eligible for child allowance may receive a dependency benefit in the form of a single parent allowance, if such allowance has been established by the United Nations Common System on the respective salary scales for the duty station. Fixed term contracted staff members may be entitled to payment of child allowance for each dependent child. The rates of child allowance are shown in Appendix 7, and, in the case of local staff members in the respective salary scale. However, in the case of an international fixed term contracted staff member, who has no dependent spouse, the staff member shall receive for the first child, in lieu of the children s allowance, the dependency rate of salary, in accordance with Rule If a staff member or his/her spouse receives an allowance for a child from any other source, it shall be subtracted from any dependency benefit payable by the OSCE in respect of that child. from any other source, it shall be subtracted from the allowance payable by the OSCE in respect of that child. Staff members shall submit in writing to the Secretary General or respective head of institution any claims for the dependency allowances. Such claims shall be supported by documentary evidence. Staff members shall inform in writing of any changes in their family or dependency status (e.g., if the child marries or ceases to be in full-time attendance at an educational institution) affecting the payment of an allowance. The Secretary General shall establish further conditions for the payment of dependency allowances. The above provisions shall apply mutatis mutandis to the Secretary General and the heads of institution. (g) Staff members shall submit in writing to the Secretary General or respective head of institution any claims for the dependency allowances. Such claims shall be supported by documentary evidence. Staff members shall inform in writing any changes in their family or dependency status (e.g., if the child marries or ceases to be in full time

13 - 9 - PC.DEC/1216/Corr.1 attendance at an educational institution) affecting the payment of the allowance. (h) (i) The Secretary General shall issue a Staff Instruction specifying further conditions for payment of dependency allowances. The above provisions shall apply mutatis mutandis to the Secretary General and the heads of institution. Regulation 5.15 Education Grant Under the conditions laid down in the Staff Rules, the OSCE shall pay education grant to eligible international fixed term contracted staff members, including the Secretary General and heads of institution, in respect of their dependent children. The education allowance shall represent 75 per cent of schooling costs actually incurred, in the limits of the maximum education grant set by the United Nations for the respective duty station. Special education grants for disabled children, education travel costs and reimbursement of tuition for the teaching of the mother tongue for a dependent child attending local school shall be granted in accordance with the United Nations Common System. Rule Education Allowance Regulation 5.15 Education Grant Under the conditions laid down in the Staff Rules, The OSCE shall pay an education grant to eligible international fixed term contracted staff members, including the Secretary General and heads of institution, in respect of their dependent children, within the limits established by the United Nations Common System. The education allowance shall represent 75 per cent of schooling costs actually incurred, in the limits of the maximum education grant set by the United Nations for the respective duty station. Special education grants for disabled children, education travel costs and reimbursement of tuition for the teaching of the mother tongue for a dependent child attending local school shall be granted in accordance with the United Nations Common System. An education allowance in respect of Rule Education Allowance Grant

14 PC.DEC/1216/Corr.1 each dependent child attending an educational institution may be payable to international fixed term contracted staff members who are not nationals or permanent residents of the country of the duty station.. The education allowance shall be payable from the scholastic year following the child s fifth birthday, or in which the child completes his/her fifth year provided this occurs in the first term of that scholastic year. The entitlement shall cease when the child is no longer in full time attendance at an educational institution, or completes four years of post secondary studies. The allowance shall not be payable beyond the school year in which the child reaches the age of twenty five years. If the child s education is interrupted for at least one school year by national service, illness or other compelling reasons, the period of eligibility shall be extended by the period of interruption. The education allowance shall not be payable in respect of correspondence courses, unless they form an integral part of education process, or for private tuition except as provided for in Rule The schooling costs shall include the cost of enrolment, registration, tuition, prescribed textbooks, courses, costs of boarding, examinations, diplomas, midday meals provided by the educational institution and daily group transportation (school buses) and shall

15 PC.DEC/1216/Corr.1 exclude all other fees and charges. (f) In the case of attendance at an educational institution outside the duty station of the eligible staff member and in case educational institutions does not provide board, a flat rate covering boarding expenses shall be payable in addition to the 75 per cent of schooling costs up to a maximum education allowance. (f) (g) Where attendance is for less than the full school year, the amount of the allowance shall be proportionate to the period of attendance. The school year shall consist of the actual number of days between the first day of the opening term and the last day of the final term at the educational institution attended by the child. (g) (h) Where the period of service of the eligible staff member does not cover the full scholastic year, the amount of the allowance for that year shall be that proportion of the allowance otherwise payable which the period of service bears to the full school year. (h) (i) Claims for payment of education allowance shall be submitted to the Secretary General or respective head of institution in writing and shall be supported by such documentary evidence as may be required. (i) (j) Notwithstanding Rule , a national or the permanent resident of the country of the duty station who at the time of the appointment has been living outside the country of the duty (j)

16 PC.DEC/1216/Corr.1 station for the last three years, shall be eligible to receive education allowance in respect of his/her dependent children provided that the children attended an educational institution abroad. (k) The maximum admissible expenses, maximum education allowance and flat rate for boarding are shown in Appendix 6. (k) Rule Overtime Rule Overtime Overtime shall be understood as the hours worked outside the normal working day of the staff/mission member concerned. Overtime shall be only compensated to local staff/mission members, except National Professional staff, under the following conditions: (i) (ii) Overtime must be authorized by the relevant supervisor; The number of overtime hours shall be compensated at the rate of 1.5 times for the period of overtime worked; (i) (ii) (iii) (iv) The number of overtime hours shall be compensated at the rate of 1.5 times ratio of 1:1 for the period of overtime worked. (iii) The compensation shall consist of either time off, or, subject to the availability of funds, additional payment. If the payment is authorized, the rate for overtime shall be calculated on the basis of the annual net base salary divided by 2080 The overtime hours performed by a staff/mission member working on a part time basis shall be compensated at the ratio of 1:1 for the period of overtime worked: (i) At the rate of one time the period of overtime worked

17 PC.DEC/1216/Corr.1 (iv) hours; The maximum number of overtime hours worked for compensation shall normally not exceed forty worked hours per month. The Secretary General, the respective Head of Institution or the respective Head of Mission may authorize, on an exceptional basis, compensation for overtime hours exceeding forty worked hours per month, up to a maximum of eighty hours per month, within the limits of resources available in their approved budget, and provided that the same staff/mission members shall not be exposed to such excessive working hours more than four months in a given calendar year. Any safety risks or potential liability that may result from overtime work performed by certain categories of staff shall be taken into account by the respective managers when considering the need for overtime work. (ii) below the eight hour normal working day; and At the rate of 1.5 times the period of overtime worked beyond the eight hour normal working day. Local staff/mission members required to work in shifts or having a regular night or weekend duty within the regular number of working hours per week shall not be entitled to compensation for overtime. The overtime hours performed by a staff/mission member working on a part time basis shall be compensated:

18 PC.DEC/1216/Corr.1 (i) (ii) At the rate of one time the period of overtime worked below the eight hour normal working day; and At the rate of 1.5 times the period of overtime worked beyond the eight hour normal working day. Rule Accumulation and Granting of Annual Leave Rule Accumulation and Granting of Annual Leave Annual leave may be taken in units of days and half days subject to the exigencies of service. OSCE Officials may not carry more than 30 days of accrued annual leave beyond 31 December each year, unless an OSCE official was unable to take annual leave for reasons of extended period of certified sick leave, maternity leave, paternity leave, adoption leave and/or special leave without pay. In such cases, the OSCE official may carry over an excess of 30 days. Any excess of 30 days carried over shall, subject to the exigencies of service, be utilized within the first six months after returning to work or it shall be forfeited. (f) Upon separation from the OSCE, contracted OSCE officials shall receive payment for unused annual leave days, up to a maximum of thirty fifteen days, calculated on the basis of the monthly net salary, including post adjustment, if applicable. In case the appointment/assignment starts after the first day of the month, the annual leave entitlement shall be prorated and half day of annual leave shall be given for every six calendar days.

19 PC.DEC/1216/Corr.1 (f) In exceptional circumstances, a fixed-term staff/mission member may be granted in writing by his/her supervisors advance annual leave up to a maximum of 15 days, provided his/her service is expected to continue for the period necessary to accrue the leave so advanced. Upon separation from the OSCE, contracted OSCE officials shall receive payment for unused annual leave days, up to a maximum of thirty days, calculated on the basis of the monthly net salary, including post adjustment, if applicable. No compensation shall be paid to seconded OSCE officials and short-term international contracted mission members appointed to a post open for secondment who upon separation have unused annual leave days. The assignment shall not be extended for the sole purpose of utilizing unused annual leave days.

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